How SBIR/STTR Regulation Will Impact Investment Firms

Law360, New York (May 23, 2012, 1:18 PM EDT) -- On May 15, 2012, the Small Business Administration issued a proposed rule amending the regulations that govern the Small Business Innovation Research ("SBIR") and Small Business Technology Transfer ("STTR") programs. The proposed rule highlights new risks and opportunities for investors in small business concerns that are established to capture SBIR/STTR funding. This article analyzes and comments on the proposed rule.

The proposed rule[1] implements the SBIR Re-Authorization Act, which Congress passed as part of the 2012 National Defense Authorization Act.[2] The proposed rule amends the...